UPI AutoPay for LIC Premium: How to Set It Up

Missing an LIC premium is one of the most expensive mistakes you can make. Your policy enters a grace period, then potentially lapses, and reviving it costs interest on all missed premiums. UPI AutoPay eliminates this risk entirely. It's the single best setup I recommend to every client who asks how to manage their policy without thinking about it.

UPI AutoPay works like this. You set a recurring payment mandate directly from your UPI-registered bank account to LIC. On each premium due date, LIC presents a debit request to your bank, your bank processes it automatically, and the premium is paid without you lifting a finger. You get a notification on your phone confirming payment. No manual action needed.

Setting it up through the LIC website: log in to licindia.in, go to your policy page, and look for 'E-Mandate' or 'Auto Pay' option. Select UPI as the payment method and enter your UPI ID, for example, yourname@okaxis or yourname@paytm. Confirm the mandate with your UPI PIN. The first payment will still be manual, but all subsequent ones are automatic.

Setting it up through MyLIC app: after logging in, tap on your policy, then 'Set AutoPay', and follow the same steps: UPI ID, amount confirmation, UPI PIN to authorise the mandate.

Which banks support it: most major banks support UPI mandate for recurring payments including SBI, HDFC, ICICI, Axis, Bank of Baroda, and Canara Bank. If your bank doesn't support e-mandates, you can set up a National Automated Clearing House (NACH) mandate instead, which works similarly but processes via banking network rather than UPI.

The mandate limit you authorise is the exact premium amount. LIC won't debit more than that. You can cancel the mandate at any time by logging in and revoking it. If you cancel, you go back to manual payments.

One thing to keep in mind: ensure your bank account has the premium amount available a day before the due date. If the auto-debit fails due to insufficient funds, you're back to manual payment and your policy is technically in the grace period until you pay. Set a calendar reminder three days before the due date as a backup.

Never miss a premium again. Set up UPI AutoPay this week, or call Ajay sir at 9415313434 and I'll walk you through it in five minutes.

Use our free [Premium Calculator](/calculators/premium) to calculate your own numbers.